The West Coast's Bank Turmoil in 2023: Explained.

The banking turmoil of 2023 is largely concentrated on the West Coast, with three of the four banks that collapsed this year located in California. Mid-sized lenders based in Beverly Hills, Phoenix, Salt Lake City, and Seattle are also under scrutiny from investors, with stocks down between 40% and 79% year to date. Some of these banks have exposure to Silicon Valley and amassed piles of uninsured deposits that were too large to be insured by the Federal Deposit Insurance Corporation. Panic, contagion, and human psychology are also factors, as are the actions of some investors that see opportunity to benefit from weaker institutions.